Wendy Morton

This government recognises the importance of reducing energy costs to boost UK manufacturing competitiveness. Under the Modern Industrial Strategy, the British Industrial Competitiveness Scheme will reduce electricity costs by up to £40/MWh for over 7000 manufacturing businesses. We will also increase support for our most energy-intensive industries under the British Industry Supercharger, uplifting the Network Charging Compensation scheme from 60% to 90%.

These measures are supported by the Connections Accelerator Service (to reduce grid connection waiting times for strategically important projects), continued support for the Energy-Intensive Industries Compensation Scheme and support to develop the UK Corporate Power Purchase Agreement market.

The government consulted a wide range of businesses from across the UK during the development of the Industrial Strategy, through roundtables, workshops, and direct conversations with businesses, business representation organisations, and networks.

This included the Invest 2035 public consultation which sought feedback on 36 questions to inform the Industrial Strategy. The consultation received over 27,000 online answers to individual questions from a wide range of businesses and organisations, including more than 250 business associations representing hundreds of thousands of businesses across the UK.

We cannot publish a list of businesses and sectors in Walsall Borough with whom we consulted, as no data was systematically collected on respondents’ geographic location. Additionally, to maintain respondents’ confidentiality we cannot share the names of individual respondents or the details of individual responses to the consultation.

In recent interactions the Secretary of State discussed with the West Midlands Mayor the importance of improving the resilience of supply chains in the region and our goal to do so through the Industrial Strategy. A Supply Chain Centre, based in DBT, will lead the government's work to build the resilience of critical supply chains and our £2.5bn DRIVE35 programme will support Zero Emission Vehicle manufacturing and its supply chain.

DBT's Advanced Manufacturing Sector Plan also sets out to strengthen UK capabilities and secure more diverse import resources, ensuring better connected and agile supply chains.

As part of Invest 2035 the Department issued a public consultation asking for feedback on 36 questions to inform the Industrial Strategy. The consultation received over 27,000 online answers to individual questions from a wide range of businesses and organisations, including more than 250 business associations representing hundreds of thousands of businesses across the UK.

In the West Midlands input was sought from businesses across a wide range of sectors, including all eight growth driving sectors. We engaged with organisations representing business interests across sectors, including the Combined Authority, Midlands Engine Partnership, local business representation organisations, and regional networks such as the export champions. Additionally, we met directly with representatives from businesses in the growth driving sectors in the region to give them an opportunity to feed into the development of the strategy.

Invest 2035 (published on GOV.UK in October 2024) identified 8 high-level 'growth driving' sectors (the IS-8): Advanced Manufacturing, Clean Energy Industries, Creative Industries, Defence, Digital and Technologies, Financial Services, Life Sciences, and Professional and Business Services. Pages 18-20 of the Invest 2035 green paper outline the methodology for identifying the IS-8 sectors.

The Technical Annex of the Modern Industrial Strategy 2025 (published on GOV.UK in June 2025) outlines the methodology for identifying the frontier industries within the IS-8 sectors.

The government is committed to working in partnership with Mayoral Strategic Authorities (MSAs) as part of delivering the Industrial Strategy's regional growth objective. We have engaged regularly with the West Midlands Combined Authority, at official and Mayoral level, to reflect and support its significant strengths in the Industrial Strategy and to coordinate local and national policies ahead of the publication of the West Midlands' forthcoming Local Growth Plan.

Regular engagement at Ministerial and official level will continue as we implement the Industrial Strategy, including the delivery of Sector Plans, which the government has committed to implement in partnership with MSAs.

The Industrial Strategy highlights the West Midlands' strengths in all eight Industrial Strategy growth-driving sectors.

The Strategy's UK-wide measures will make it quicker and easier to do business, including in the West Midlands. Specific Industrial Strategy interventions for the West Midlands include devolved funding from the £150m Creative Places Growth Fund, a co-created Professional and Business Services Hub and exploring a pilot initiative for an Electric Vehicles manufacturing cluster. The West Midlands will also receive £30m through the Local Innovation Partnerships Fund, a British Business Bank Cluster Champion to coordinate investment and a strategic partnership with the National Wealth Fund.

The government engaged widely throughout the development of the Industrial Strategy, including with businesses, business representation organisations, and trade unions.

In the West Midlands, this included roundtables and discussions with businesses, engagement with the Midlands Engine Partnership, written consultation on our Green Paper Invest 2035 and close working with the West Midlands Mayoral Strategic Authority to understand the strengths and barriers to growth in the region. Additionally, the department's regionally based teams sought input from SME businesses across a range of sectors.

We will continue engaging widely throughout Industrial Strategy implementation.

Government is well aware of the issue of high industrial energy costs, and the challenges that poses for Energy Intensive Industries (EII). That is why we continue to offer support to electro-intensives through the EII compensation scheme and the Supercharger.

We will also soon be consulting on an uplift of the Network Charges Compensation scheme.

The recent Industrial Strategy also committed to consulting on the establishment of a new support scheme, British Industrial Competitiveness Scheme (BICS) which will exempt up to 7,000 businesses from some of policy costs included within electricity bills.

Government is well aware of the issue of high industrial energy costs, and the challenges that poses for Energy Intensive Industries (EII). That is why we continue to offer support to electro-intensives through the EII compensation scheme and the Supercharger.

We will also soon be consulting on an uplift of the Network Charges Compensation scheme.

The recent Industrial Strategy also committed to consulting on the establishment of a new support scheme, British Industrial Competitiveness Scheme (BICS) which will exempt up to 7,000 businesses from some of policy costs included within electricity bills.

Details of the meetings held by Ministers of the Department for Business and Trade are available on transparency pages of gov.uk and are released as part of the Government’s transparency agenda.

There is no delay to implementation. On 1 July the Government published “Implementing the Employment Rights Bill: Roadmap”. It provides clarity for employers and workers on when Government will consult on the implementation of Bill measures, and when measures will take effect. Feedback from businesses is that this clarity has improved confidence. The Roadmap sets out our initial view that day one unfair dismissal protections will take effect in 2027, after regulations have been made and the Advisory, Conciliation and Arbitration Service has considered to what extent , to reflect day one rights in the Code of Practice on disciplinary and grievance procedures.

In setting out how the Government will strengthen connections between and within city regions and clusters, the Industrial Strategy confirmed our commitment to delivering and maximising the growth benefits of HS2. The Industrial Strategy referenced independent research by Arcadis, conducted on behalf of HS2 Ltd, that suggests HS2 could lead to 41,000 new homes in the West Midlands. The source can be found at https://www.arcadis.com/en-gb/projects/europe/united-kingdom/hs2-impact-study.

The department has worked closely with the Ministry of Housing, Communities and Local Government during the development of the Industrial Strategy and will continue to do so.

My department has published a set of Impact Assessments that provide a comprehensive analysis on the potential impact of the Employment Rights Bill. This analysis includes con-sideration of impacts on wages and macro-economic impacts. This analysis is available at: https://www.gov.uk/guidance/employment-rights-bill-impact-assessments

This represents the best estimate for the likely impacts, including on wages and the wider economy, given the current stage of policy development. We are refining our analysis as policy development continues, working closely with external experts, businesses and trade unions.

My department works closely with businesses to understand the needs of UK companies wishing to operate in Ukraine. Support is available on https://www.gov.uk/government/collections/support-for-uk-businesses-helping-to-rebuild-ukraine, which references potential options for insurance.

UK Export Finance (UKEF) continues to provide risk insurance for UK exporters trading with Ukraine.

The Department recognises the significant challenges faced by energy-intensive industries like ceramics, including rising global energy costs, unfair trading practices, and carbon leakage.

We are taking action to protect these industries, including through trade defence measures against dumping and subsidisation. The UK-India FTA also includes a bilateral safeguard mechanism, allowing the UK to suspend or increase tariff concessions if the industry is facing injury.

Over 93% of Indian ceramics entered the UK tariff-free in 2024 whilst the remaining 7% paid a tariff. 11 of the 43 ceramics tariff lines are dutiable and face a simple average tariff of 4%.

The Advanced Manufacturing Sector Plan, part of the Industrial Strategy, outlines government support for the sector, including skills, energy, and regulations.

Ceramics has been identified in the Industrial Strategy as part of our initial list of inputs from foundational industries that are important to unlocking growth in our priority sectors. Some ceramics businesses will benefit from increased network charge compensation, priced at around £10/MWh. Additionally, the new British Industrial Competitiveness Scheme will cut electricity costs by up to 25% for eligible electricity-intensive businesses including foundational manufacturing industries, such as ceramics. We will consult on the design and eligibility shortly, with a review point in 2030.

The department works closely with the Construction Leadership Council’s Material Supply Chain Group. Their most recent statement, on 23 April, noted the materials supply chain as functioning well and product availability generally good.

We recognise high energy prices are a key challenge for businesses, and our Clean Power 2030 target is key to long-term sustainable price reductions. Our modern Industrial Strategy announced a new British Industrial Competitiveness Scheme that will reduce electricity costs and support thousands of energy intensive businesses.

UK Emissions Trading Scheme (UK ETS) participants are provided with free allocations to mitigate the risk of carbon leakage and incentivise emissions reduction. The UK ETS Authority is reviewing Free Allocation policy and has guaranteed current free allocation levels until 2027.

The Minister for Investment and officials from the Department for Business and Trade have participated at the UK Real Estate Investment and Infrastructure Forum (UKREiiF) event that took place between 20 and 22 May 2025.

HMG continues to collaborate with G7+ partners, International Financial Institutions and the global insurance industry, to strengthen availability and access to insurance for Ukraine following delivery of the 2023 London Framework for War Risk Insurance. We assist UK businesses engaged in Ukraine's post conflict recovery by supporting inward and outward business delegations, delivering webinars, producing dedicated business guides, issuing regular newsletters and supporting business partnerships.

UK Export Finance has financed a number of projects in Ukraine and is working with other ECAs to ensure a joined-up approach in meeting the immediate and post-conflict needs of Ukraine.

Limited availability of insurance to operate in Ukraine is a market access barrier for businesses to export, invest or operate in Ukraine. The expertise and global reputation of the London Insurance sector has continued to mobilise international support to increase risk coverage for real sector and trade finance under the 2023 London Conference Framework for War Risk Insurance.

In March, Minister Doughty and I joined an international roundtable hosted by Lloyds of London to maintain momentum and encourage insurance companies to reconsider the Ukrainian market. UK Export Finance (UKEF) continues to provide risk insurance for UK exporters trading with Ukraine.

The Office of Trade Sanctions Implementation (OTSI) was established on 10^th October 2024 with new powers to strengthen the implementation and enforcement of trade sanctions. OTSI is working with the Foreign, Commonwealth and Development Office and other relevant departments to take forward the conclusions of the cross-Government review of sanctions implementation and enforcement announced by the Minister for Europe on 15^th May 2025.

Last year, the Business Secretary announced a new Business Growth Service, which will make it easier for businesses including start-up companies across the West Midlands and the UK to get support and advice to grow, export and thrive.

The West Midlands Growth Hub is where small and medium-sized businesses across Aldridge-Brownhill and the West Midlands can obtain specialist advice on scaling up, accessing new markets, and receiving financial support through the British Business Bank.

Businesses can also access other Government programmes such as the Business Support Service, Help to Grow: Management, the UK Export Academy, International Trade Advisors and the Export Support Service.

The High Growth Accelerator is a great example of locally led business growth delivered by the West Midlands Combined Authority through Business Growth West Midlands.

Last year’s pilot saw fifty SMEs on track to boost investment and turnover by £20m with the West Midlands. The High Growth Accelerator continues into its second year, and the Department will be working closely with the Combined Authority to support its outcomes.

DBT will be launching its New Business Growth Service which will make it easier and quicker for SMEs to find government advice and support and will be an integral part of the SME Strategy that will be published in 2025.

The High Growth Accelerator is a great example of locally led business growth delivered by the West Midlands Combined Authority through Business Growth West Midlands.

Last year’s pilot saw fifty SMEs on track to boost investment and turnover by £20m with the West Midlands. The High Growth Accelerator continues into its second year, and the Department will be working closely with the Combined Authority to support its outcomes.

DBT will be launching its New Business Growth Service which will make it easier and quicker for SMEs to find government advice and support and will be an integral part of the SME Strategy that will be published in 2025.

The High Growth Accelerator is a great example of locally led business growth delivered by the West Midlands Combined Authority through Business Growth West Midlands.

Last year’s pilot saw fifty SMEs on track to boost investment and turnover by £20m with the West Midlands. The High Growth Accelerator continues into its second year, and the Department will be working closely with the Combined Authority to support its outcomes.

DBT will be launching its New Business Growth Service which will make it easier and quicker for SMEs to find government advice and support and will be an integral part of the SME Strategy that will be published in 2025.

The Department for Business and Trade has published a set of Impact Assessments that provide a comprehensive analysis on the potential impact of the Employment Rights Bill. This analysis includes con-sideration of impacts on businesses and economic growth and concludes the package could have “a positive but small direct impact on economic growth” and will “help to raise living standards across the country and create opportunities for all.”

This represents the best estimate for the likely impacts given the current stage of policy development. We plan to refine our analysis as policy development continues, working closely with external experts, businesses and trade unions.

The Secretary of State, responsible Ministers and policy officials meet regularly with their counterparts in HM Treasury. This includes on discussions related to delivering the biggest upgrade to workers' rights in a generation through the Employment Rights Bill. Our analysis shows the package could have “a positive but small direct impact on economic growth” and will “help to raise living standards across the country and create opportunities for all.”

This represents the best estimate for the likely impacts given the current stage of policy development. We plan to refine our analysis as policy development continues, working closely with external experts, businesses and trade unions.

My department have and continue to hold discussions on attracting private investment to the West Midlands and across the UK. We work with clients to understand their requirements and to reduce barriers which inform the client’s decision to locate in the region.

The West Midlands region continues to attract FDI across sectors to enhance economic growth and prosperity. My department, as announced, will include the new expanded Office for Investment which will lead the work on attracting investment into our cities and regions.

My department, with officials from FCDO, directly supported a number of Combined Authority leaders on this visit to China, which included the Mayor of the West Midlands. The programme focused on strengthening growth across regions to enhance investment and diplomatic relationships. Economic growth and investment remain a fundamental priority for this Government, and we will continue to support regional mayors and our nations to forge global relationships with investors and businesses to promote the UKs investment credentials.

On Tuesday 18 March, the Secretary of State for Business and Trade met with US Commerce Secretary Howard Lutnick, US Trade Representative Jamieson Greer and the Special Envoy to the UK Mark Burnett in Washington DC. The meeting followed last month’s agreement between the Prime Minister and President Trump that teams would start working together on an Economic Prosperity Deal, building on our shared strengths and commitment to economic security. Ministers and officials will be continuing discussions moving forward.

This government is committed to creating a fairer business rates system for small businesses on the high street. From 2026-27, we will introduce permanently lower tax rates for retail, hospitality, and leisure (RHL) properties with rateable values of less than £500,000.

We recognise that businesses will need support during this period of transition. RHL relief will be extended for one year at 40% and the small business multiplier will be frozen for one year. This package is worth over £1.5 billion in 2025-26 and is aimed at supporting the most vulnerable businesses.

Our new Business Growth Service will make it easier for businesses across the UK to get the help, support and advice they need. It will bring together existing offers including Business Support Service and the network of local Growth Hubs across England. Our forthcoming Small Business Strategy will set out how we intend to further support small businesses on the high street and beyond.

In their meeting on 27 February, the Prime Minister and President spoke about the fair, balanced and reciprocal economic relationship that the UK and the US enjoy. They agreed to deepen this relationship, and tasked their teams to work together on an economic deal focused on tech. We are in regular discussions with our US counterparts, and we will set out more details as conversations evolve.

The UK is exploring various avenues to strengthen UK-U.S. trade ties and support economic growth, in tandem with development of the Industrial and Trade Strategies. The UK continues to deliver against commitments in signed Memoranda of Understanding (MoUs) with individual U.S. states, to help UK businesses deepen their commercial links and facilitate trade.

The UK most recently signed an MoU concerning co-operation on economic relations, trade and investment with the State of Colorado on 27 January 2025